Friday form guide: Yields of up to 6.6% in Pakenham
In a block of two, this two-bedroom Pakenham apartment is currently vacant but was previously rented for $240 per week, according to Barry Plant listing agent Marcus Washington. The property in immaculate condition has no body corporate fees and includes a low-maintenance back garden.
Washington is marketing the property with price hopes of $190,000 plus, and if it sells for that price, that would secure an investor a gross rental yield of 6.6% at a rent of $240 per week, well above the gross rental yield for Pakenham units of 5.3%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees.
Washington Brown estimates the first-year tax depreciation deduction to be $6,000 and over five years to be $16,000.
The median unit price in Pakenham fell 5.4% in the past year but rose 17.6% in the past five years, according to RP Data.
For more information about prices and yields in Pakenham, see the RP Data suburb page.
The property will be open for inspection on Saturday, October 27 at noon and will go to auction on Saturday, November 3 at noon.
